Electronic auctions reshape property sales in Cyprus

Thirty-six per cent of published electronic property auctions in Cyprus are suspended following agreements reached between borrowers and lenders, the Cyprus Banking Association said during a press conference held to present the e-auction electronic auction system.

The Cyprus Banking Association explained that the platform was developed and is managed by ACB E-Auctions Ltd, a company established in 2019 that is a 100 per cent subsidiary of the association.

It was explained that electronic auctions operate under a very strict legal framework that precisely defines both the procedure and the role of each party involved.

The process is governed by the 2019 order of the Finance Ministry on the sale of mortgaged property through an electronic auction system, under which the execution of each auction is carried out in a fully automated manner without human intervention.

It was also clarified that for the transfer of a mortgaged property to be completed, the electronic auction report must be submitted to the Land Registry, and the property is transferred only to the successful bidder.

The association stated that physical auctions were discontinued in 2022, and that all auctions are now conducted exclusively online.

Journalists were informed that the e-auction system has approximately 10,000 registered users from Cyprus and abroad and that it began operating on November 18, 2019.

It was further explained that the system was designed to be fully compliant with the 2019 legal order regulating electronic auctions of mortgaged property.

The platform was described as having a strong presence on social media, with nearly 5,000 followers on Facebook, through which it informs the public about upcoming auctions and provides educational material.

It was stated that when no agreement is reached between a borrower and a lender, it is to the benefit of the mortgaged borrower to attract many bidders, as increased participation tends to raise the final sale price of the property.

This dynamic has been observed in multiple cases, with the highest recorded interest in a single auction reaching 25 participants.

The association also explained that the law requires publication of the auction 45 days before its execution on the Interior Ministry website, in two newspapers with nationwide circulation, on the website of the mortgage lender and on the ACB E-Auctions Ltd platform.

Regarding borrower rights, it was explained that the mortgaged borrower has the right to observe the auction of their property, provided they register on the electronic auction system through CY Login, a right that is not extended to the mortgage lender.

It was further stated that the borrower, either personally or through a relative, has the right to participate in the auction and bid for the property.

In addition, the law provides that when the property is a primary residence valued at up to €350,000, the borrower and first-degree relatives may exercise a preferential right, allowing the borrower to purchase the home at the final auction price once the process concludes.

In relation to participation, it was explained that any interested party registers on the e-auctions platform free of charge, selects the auction of interest and submits a guarantee amount between one and five working days before the auction.

On the day of the auction, participants log in and submit their bids, while their screen displays the current price, their latest bid and their ranking in real time.

If a participant successfully acquires the property, they receive an email with the results and instructions outlining the next procedural steps.

The guarantee amount is then transferred to the mortgage lender, with the successful bidder required to contact the lender to proceed further.

If the participant is unsuccessful, they receive an email notification and the guarantee amount is refunded, depending on the payment method used.

The association outlined several advantages of electronic auctions, including the fact that participation requires only internet access and a computer, phone or tablet, without the need for physical presence.

It was stressed that full anonymity of participants is ensured, while the platform is user-friendly, available in Greek and English, and supported by both auction staff and a call centre.

The system allows natural and legal persons from anywhere in the world to participate in auctions.

For Cyprus tax residents, the registration and verification process is fully automated through the use of Cy Login credentials.

The guarantee amount can be paid by credit or debit card, while the auction process itself is controlled exclusively by the system and does not allow human interference.

It was also explained that the exclusive use of electronic auctions has eliminated incidents of intimidation that were previously observed during physical auctions.

The process was described as incorruptible, transparent and fair to all bidders, with increased participation leading to higher prices to the benefit of borrowers.

According to an announcement by the Cyprus Banking Association, the initiative forms part of a broader framework of actions aimed at providing detailed information on banking and economic issues directly affecting the financial sector and the Cypriot economy.

The association stated that a key objective remains the strengthening of cooperation with media professionals, to ensure accurate and objective information reaches the public on important issues.

It was also stated that similar initiatives are planned for other topics during 2026.

Following the presentation, an extensive discussion took place during which journalists posed questions and received clarifications from experts, reinforcing a shared commitment to transparency and continuous dialogue.